Berryhills accused of money laundering

State agency: Brothers shifted campaign funds illegally four years ago

State legislators Tom and Bill Berryhill and two local Republican Central Committees have been accused of money laundering by the state's Fair Political Practices Commission.

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By Keith Reid

recordnet.com

By Keith Reid

Posted Nov. 22, 2012 at 12:01 AM

By Keith Reid

Posted Nov. 22, 2012 at 12:01 AM

» Social News

State legislators Tom and Bill Berryhill and two local Republican Central Committees have been accused of money laundering by the state's Fair Political Practices Commission.

According to a report by Sacramento political watchdog California Watch, the Fair Political Practices Commission is accusing Sen. Tom Berryhill, R-Modesto, and Assemblyman Bill Berryhill, R-Stockton, of planning to funnel $40,000 of the senator's campaign money through the San Joaquin County and Stanislaus County Republican Central Committees during the 2008 election. The state's legal donation limit for individuals is $3,600.

"We are flatly contesting this. We believe that it is a meritless accusation. Tom Berryhill made legal contributions, and there is no evidence of illegal practices," Bell said. "We are taking (the FPPC) to a hearing, and we are highly confident we will win."

A hearing is scheduled in June, Bell said.

In 2008, both brothers were running for seats in the California Assembly. Tom Berryhill was seeking re-election in the 26th District - which included Escalon, Manteca and Ripon and much of eastern unincorporated San Joaquin County - and Bill Berryhill was seeking his first term in the 25th District, which included Calaveras County.

The FPPC complaint alleges Tom Berryhill donated $20,000 each to the Republican Central Committees, which can accept as much as $30,200 per donor according to California Watch. The central committees then donated the money to Bill Berryhill's campaign to pay for television advertising.

Bell said all the donations were legal and denied that the Berryhills had any premeditated plans to use the central committee to launder money.

"If that had happened, it would be different. But that didn't happen," Bell said.

Stanislaus GOP Committee Chairman Jim DeMartini said Tom Berryhill has made many contributions to the organization over the years. He said it's not uncommon for candidates who have excess funding to donate it to the central committee, where it will usually go toward other races the party endorses.

"But Tom has never told us where to put the money he has donated," DeMartini said, adding that he was first interviewed by the FPPC regarding this case two years ago. "We put money into campaigns that need it most."

The FPPC's allegation breaks down the 2008 money transfer as a case where Tom Berryhill was a runaway winner in his race, but Bill Berryhill was in a much tighter fight with Jim Eisenhunt, a Democrat. DeMartini said his committee was surprised by how much money the Democratic party was putting in to Eisenhunt's campaign.

In late October 2008, Tom Berryhill wrote $20,000 checks to both GOP committees. The committees promptly donated the same amount to Bill Berryhill's campaign, California Watch reported.

Bell countered that the FPPC has no evidence to "connect any dots."

Stockton City Councilman Dale Fritchen, a former San Joaquin committee chairman is also named in the complaint as a facilitator. A 2008 email written by Fritchen describes that the committee received a $20,000 check, and that "I met with Bill and they are desperate for money to put out a commercial campaign that they are already committed to," California Watch reported.

The complaint further alleges Bill Berryhill then fudged his financial records to show he received the money as donations from the central committee, without any mention of Tom Berryhill's role.

Bill Berryhill is locked in a dead heat with Assemblywoman Cathleen Galgiani for the newly redrawn Senate 5th District, which includes all of San Joaquin County and parts of Sacramento and Stanislaus counties.